Correlation Between PT Sarana and FingerMotion
Can any of the company-specific risk be diversified away by investing in both PT Sarana and FingerMotion at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PT Sarana and FingerMotion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Sarana Menara and FingerMotion, you can compare the effects of market volatilities on PT Sarana and FingerMotion and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in PT Sarana with a short position of FingerMotion. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sarana and FingerMotion.
Diversification Opportunities for PT Sarana and FingerMotion
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SMNUF and FingerMotion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Sarana Menara and FingerMotion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FingerMotion and PT Sarana is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on PT Sarana Menara are associated (or correlated) with FingerMotion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FingerMotion has no effect on the direction of PT Sarana i.e., PT Sarana and FingerMotion go up and down completely randomly.
Pair Corralation between PT Sarana and FingerMotion
Assuming the 90 days horizon PT Sarana Menara is expected to under-perform the FingerMotion. In addition to that, PT Sarana is 1.03 times more volatile than FingerMotion. It trades about -0.14 of its total potential returns per unit of risk. FingerMotion is currently generating about 0.0 per unit of volatility. If you would invest 214.00 in FingerMotion on November 3, 2024 and sell it today you would lose (88.00) from holding FingerMotion or give up 41.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 22.58% |
| Values | Daily Returns |
PT Sarana Menara vs. FingerMotion
Performance |
| Timeline |
| PT Sarana Menara |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FingerMotion |
PT Sarana and FingerMotion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Sarana and FingerMotion
The main advantage of trading using opposite PT Sarana and FingerMotion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sarana position performs unexpectedly, FingerMotion can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FingerMotion will offset losses from the drop in FingerMotion's long position.| PT Sarana vs. Proximus NV ADR | PT Sarana vs. Singapore Telecommunications Limited | PT Sarana vs. Telstra Limited | PT Sarana vs. MTN Group Ltd |
| FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. KT Corporation | FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. KORE Group Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
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